Graduate Funding After Grad PLUS

What changed

The One Big Beautiful Bill Act (OBBBA) eliminated the Grad PLUS loan program for new borrowers. Grad PLUS loans previously allowed graduate and professional students to borrow up to their full cost of attendance — above and beyond the limits of standard Stafford loans — with federal backing, income-driven repayment options, and forgiveness eligibility.

That option is gone. Graduate students planning their fall 2026 enrollment are making funding decisions right now without the program they expected to use.

What federal borrowing still covers

Stafford loans (Direct Unsubsidized Loans) remain available to graduate students, but they carry annual and lifetime limits that fall well short of what many programs cost.

Program Type	Annual Stafford Limit	Lifetime Limit
Most graduate programs	$20,500	$138,500
Professional degree programs MD, DO, DDS, PharmD, JD, OD, DVM	$50,000	$224,000

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The gap is real for many students If your program's cost of attendance exceeds your Stafford limit — which is common in medicine, law, dentistry, veterinary medicine, and many other professional programs — you have a funding gap that federal loans alone cannot fill.

What private lending actually involves

Private student loans are issued by banks, credit unions, and specialized lenders — not the federal government. That means the terms, eligibility requirements, and protections vary significantly from lender to lender.

→ Credit matters. Most private lenders require good to excellent credit, or a creditworthy cosigner. Unlike federal loans, approval is not guaranteed.
→ Rates vary widely. Interest rates depend on your credit profile, the lender, and whether you choose a fixed or variable rate. Compare carefully.
→ Repayment protections differ. Private loans do not automatically qualify for federal income-driven repayment or Public Service Loan Forgiveness. Review each lender's hardship and deferment policies.
→ Cosigner release policies vary. Some lenders allow cosigner release after a period of on-time payments. Others do not. If a cosigner is involved, this matters.
→ Enrollment status affects eligibility. Some lenders require full-time enrollment. Others serve half-time or less-than-half-time students. Know your status before you apply.

How to evaluate a private lender

Not all private lenders are equal. Before applying, there are a few things worth understanding about any lender you're considering.

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What Persist looks for in a verified lender Every lender on the Persist platform is evaluated against our published Ethical Verification Standard — observable, verifiable criteria including transparent rate disclosure, fair hardship policies, cosigner release availability, and responsible underwriting. No lender pays for placement or prioritization. Read the full standard →

When evaluating any lender independently, look for: clearly disclosed APR ranges (not just introductory rates), documented hardship and deferment policies, a published cosigner release process, and transparent fee structures with no prepayment penalties.

Questions worth asking before you borrow

→ What is my actual funding gap after Stafford loans, scholarships, and other aid?
→ What is my credit score, and does it accurately reflect my history?
→ Do I have a creditworthy cosigner available, and am I comfortable asking?
→ What is the total amount I expect to borrow across my program — not just this year?
→ What income can I realistically expect in my field within two years of graduation?
→ Does this lender have documented policies for financial hardship during repayment?

Ready to see your options?

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